In an order of dismissal filed Tuesday in the U.S. District Court for the Northern District of California, Judge Vaughan R. Walker approved the confidential settlement, dismissing the suit with prejudice.

The original complaint, filed by SanDisk in October 2001 against Memorex Products Inc., Power Quotient International Co. Ltd, Pretec and Ritek Corp., sought damages and injunctions on the manufacture, sale, importation or use of...